1st European Company Inks Deal to Explore Oil, Gas in Iran

National Iranian Oil Company announced signing of an agreement with a European company to start the new oil and gas discoveries in Iran’s Salt Domes.

Although Iran talks with the 5+1 have not yet led to a final agreement, European companies have begun negotiations with Iran ot exploit advantages of its high oil and gas reserve.

Following the negotiations and correspondence between the National Iranian Oil Company (NIOC) and Italy’s Eni S.p.A Oil and Gas Company as well as Russias LUKOIL, the first oil and gas exploration contract was signed with a European company.

Currently, Iran holds the largest hydrocarbon reserves in the world with 157 billion barrels of crude oil and over 34 trillion cubic meters of natural gas reserves. Based on the former estimates, Iran has crude oil and natural gas for production and export up to at least 50 and 80 years respectively, without any new discoveries.

NIOC exploration director Hormoz Ghalavand announced signing of a contract with a European company to carry out exploration activities in the Salt Domes.

He reiterated that the exploration activities in the Salt Domes will be carried out by the European international company.

The official reminded that in addition to oil and gas exploration project in Salt Domes, negotiations has been made with the European company for technology transfer. "On the other hand, NIOC Board of Directors has issued approval of the cooperation with the European company," Ghalavand said.

In a recent interview with reporters, Ghalavand announced negotiations with 18 international companies to sign contracts on oil and gas exploration and development in 40 new exploration blocks.

Earlier, NIOC had also announced that Iran has ranked first in the world on new discoveries of oil and gas, especially in recent years.

According to OPEC official report, Iran upgraded its rank to third place in the world after Saudi Arabia and Venezuela.